July 8 (Reuters) - The Pakistani government said on

Tuesday it had approved four parties, including business groups

and a military-backed firm, to potentially bid for a stake in

debt-ridden Pakistan International Airlines.

Pakistan has been seeking to sell a 51-100% stake in the

struggling national airline to raise funds and reform

cash-draining, state-owned enterprises as envisaged under a $7

billion International Monetary Fund programme.

It would be the country's first major privatisation in

nearly two decades.

Among the bidding groups, one is a consortium of major

industrial firms Lucky Cement, Hub Power Holdings

, Kohat Cement and Metro Ventures.

Another is led by investment firm Arif Habib Corp

, and includes fertiliser producer Fatima Fertilizer

, private education operator The City School, and real

estate firm Lake City Holdings.

Additionally, Fauji Fertilizer Company, a

military-backed conglomerate, and Pakistani airline Airblue,

have been approved to bid for PIA.

"The pre-qualified parties will now proceed to the buy-side

due diligence phase," Pakistan's Privatisation Minister Muhammad

Ali said in a statement.

The review process is set to last two to two-and-a-half

months, with final bidding and negotiations anticipated in the

fourth quarter of 2025, Ali previously told Reuters.

The country's privatisation ministry also said that the

Cabinet Committee on Privatisation approved the transaction

structure for the Roosevelt Hotel located in New York, including

options for both outright sale and long-term lease.

From the Roosevelt Hotel, Pakistan is expecting over $100

million as a first payment during this year, Ali previously told

Reuters.